Macroeconomics
21st Edition
ISBN: 9781259915673
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Chapter 16.5, Problem 1QQ
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Increase in resource availability.
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14... Consider this statement: āDevoting a larger share of national output to investment would help to restore rapid productivity growth and rising living standards.ā Under what conditions is the statement accurate?
An economy with no government and no foreign trade tends to move toward equilibrium GDPbecause at output levels greater than equilibrium GDP, inventories are
a)increasing, and actual investment exceeds desired investment.b)increasing, and actual investment is less than desired investment.c) decreasing, and actual investment exceeds desired investment.d)decreasing, and actual investment is less than the desired investment.
Between Foreign Direct Investment (net inflows %) and Real GDP Growth ( %):
A. Identify the independent and dependent variable and explain
Between Foreign Direct investment (net inflows %) and Real GDP per capita (constant %)
a. Identify the independent and dependent variable and explain
Chapter 16 Solutions
Macroeconomics
Ch. 16.1 - Prob. 1QQCh. 16.1 - Prob. 2QQCh. 16.1 - Prob. 3QQCh. 16.1 - Prob. 4QQCh. 16.4 - Prob. 1QQCh. 16.4 - Prob. 2QQCh. 16.4 - Prob. 3QQCh. 16.4 - Prob. 4QQCh. 16.5 - Prob. 1QQCh. 16.5 - Prob. 2QQ
Ch. 16.5 - Prob. 3QQCh. 16.5 - Prob. 4QQCh. 16 - Prob. 1DQCh. 16 - Prob. 2DQCh. 16 - Prob. 3DQCh. 16 - Prob. 4DQCh. 16 - Prob. 5DQCh. 16 - Prob. 6DQCh. 16 - Prob. 7DQCh. 16 - Prob. 8DQCh. 16 - Prob. 1RQCh. 16 - Prob. 2RQCh. 16 - Prob. 3RQCh. 16 - Prob. 4RQCh. 16 - Prob. 5RQCh. 16 - Prob. 6RQCh. 16 - Prob. 7RQCh. 16 - Prob. 8RQCh. 16 - Prob. 9RQCh. 16 - Prob. 1PCh. 16 - Prob. 2PCh. 16 - Prob. 3PCh. 16 - Prob. 4PCh. 16 - Prob. 5PCh. 16 - Prob. 6PCh. 16 - Prob. 7P
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- Suppose that every additional 3 percentage points in the investment rate boosts GDP growth by 1 percentage point. Ā Ā Ā Ā Ā Assume also that all investment must be financed with consumer saving. Ā Ā Ā Ā Ā Note: Investment rate = Investment/GDP Ā Ā Ā Ā Ā Ā The economy is currently characterized by Ā Ā Ā Ā Ā Ā Ā Consumption: $11 trillion Ā Ā Saving (= Investment): $3 trillion Ā Ā GDP: $14 trillion Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā If the goal is to raise the growth rate by 2 percentage points, Ā Ā Ā Ā Ā Ā a. by how much must investment increase? Ā billion Ā Ā Ā Ā Ā Ā b. by how much must consumption decline? Ā billionarrow_forwardSuppose that Consumption = $260 billion, Net Investment = $20 billion, Depreciation = $60 billion, Government Spending = $80 billion, Taxes = $100 billion, Net Exports = $20 billion, and Imports = $40 billion. What does exports equal as a percent of GDP? Select one: a. 8.7% b. 10.0% c. 13.6% d. 15.2% e. 18.0%arrow_forwardFor this problem, assume exports equal zero and that firms did not purchase any plant or equipment in the years specified. Suppose in the year 2015, firms in this this country produced 4,000 million widgets, all of which they planned on selling.Ā (In other words, firms were not planning on any changes to their inventories.)Ā Of those 4,000 million widgets, households purchased 3,000 million, and government purchased 750 million.Ā In 2015, what were firmās planned investments equal to? In 2015, what were firmās actual investments equal to? (explain). In 2015, what was the relationship between planned expenditures and actual expenditures? (Explain and use numbers) In 2015, what was the relationship between actual expenditures and the amount of output (widgets) produced? All else equal, what will firms likely do in the following year?arrow_forward
- The country of Freedonia has a GDP of $4000,Ā consumption of $1500,Ā and government purchases of $900.Ā What does this situation imply?QuestionĀ 1Ā options:Investment is equal to $1600.Investment plus net capital outflow is equal to $1600.Investment plus net exports is equal to $2400.Saving is equal to $2400. Ā Please give me correct answer with calculation and full explanationĀ otherwise i give multiple downvote Ā Note:- PleaseĀ avoid using ChatGPTĀ and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely andĀ accurate answer. Rest assured, you will receive an upvote if the answer is accurate.arrow_forwardThe saving rate (gross domestic saving as a % of GDP) in Singapore, a small open economy, was 48% in 2017 while the investment rate (domestic investment as a % of GDP) was 25%. As a result, there was net outflow of capital from Singapore in 2017.Ā Explain whether the given statement is true, false or uncertain. Start your answer by selecting one of the options ā āTrueā, āFalseā or āUncertainā and then provide arguments to justify your selectionarrow_forwardWhat could have caused an increase in net national product? a. Low GNP and high depreciation b. Low GNP and low depreciation c. None of the choices d. Higher GNP and lower depreciationarrow_forward
- Holding other factors constant, a higher relative price of a firm's output will a. increase national saving. b. decrease investment. c. increase investment. d. decrease national saving.arrow_forwardIn 2014 the dollar value of total output was roughly $40 billion in North Korea and $1,600 billion in South Korea. South Korea devotes 2.7 percent of its output to defense and North Korea devotes 14.8 percent of its output to defense. Ā Ā Ā Ā Ā a. Compute how much North Korea spends on its military. Ā billion Ā Ā Ā Ā Ā b. Which nation spends more, in absolute dollars?arrow_forwardIf consumption equals $6,200 billion, investment equals $1,200 billion, transfer payments equal $1,500 billion, government purchases equal $2,200 billion exports equal $900 billion imports equal $1,100 billion foreign factor income equals $200 billion Then GDP is equal to: Group of answer choices $11,100 billion $9,600 billion $10,900 billion $9,400 billionarrow_forward
- #12 Ā Ā Answer this question based on the given information for an economy in some year. Ā Dollar value of resource extraction activity = $20 billion Dollar value of production activity = $50 billion Dollar value of distribution activity = $80 billion Dollar value of final output = $110 billion Gross output for this economy equals Ā Multiple Choice Ā $260 billion. Ā an amount that cannot be calculated with the information given. Ā $110 billion. Ā $150 billion.arrow_forwardAssume that the consumption schedule for a private open economy is such that consumption C = 50 + 0.8Y. Assume further that planned investment Ig and net exports Xn are independent of the level of real GDP and constant at Ig = 30 and Xn = 10. Recall also that, in equilibrium, the real output produced (Y ) is equal to aggregate expenditures: Y = C + Ig + Xn.a. Calculate the equilibrium level of income or real GDP for this economy.b. What happens to equilibrium Y if Ig changes to 10? What does this outcome reveal about the size of the multiplier?arrow_forwardSuppose that real domestic output in an economy is 100 units, the quanity of inputs is 10, and the price of each input is $5. The per unit cost of production in the economy described is?arrow_forward
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